Types of Benchmarking
- Internal - This is a comparison among similar operations within one's own organisation.
- Competitive - This is a comparison to the best of direct competitors
- Functional - This is a comparison of methods to companies with similar processes in the same function outside one's industry.
- Generic process - This is a comparison of work processes to others who have innovative, exemplar work processes
There are several generic definitions of benchmarking that provide varying insight.
- Xerox definition - The continuous process of measuring our products, services, and practices against our toughest competitors or those companies known as leaders.
- Quality definition - A standard process used to evaluate success in meeting customer requirements.
- Dictionary definition - A standard against which something can be measured. A survey mark of previously determined position used as a reference point.
- Generic definition - A basis of establishing rational performance goals through the search for industry best practices that will lead to superior performance.
The 10-step process - A structured way of looking outside to identify, analyse, and adopt the best in the industry or function.
The Benchmarking process
The formal 10-step benchmarking process is shown in outline below.
- Camp. R. C., Business Process Benchmarking: finding and implementing best practices, 1995, ASQC Quality Press, Milwaukee.